Which of the Following Would Be Considered a Direct Labor

question 34

Multiple Choice

Which of the following would be considered a direct labor cost for a manufacturing company?

• A) wages of the assembly line staff
• B) wages of the factory janitors
• C) wages of the factory manager
• D) salaries of the internal auditors

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Definitions:

Activity-Based Costing

A costing methodology that assigns costs to products and services based on the activities and resources that go into producing them.

Activity Cost Pools

These are collections of all the costs related to a specific activity or process in activity-based costing.

Time-Driven

A term referring to models or systems that are based on the actual time taken to perform activities, often used in activity-based costing and scheduling.

Activity-Based Costing

An accounting method that assigns costs to products or services based on the activities they require, aiming to more accurately reflect the actual costs of production.